Although the 10-year JGB yield has gradually been creeping up towards the new 1% ceiling tolerated by the BoJ, this is no surprise given a broad-based rise in 10-year sovereign yields elsewhere. Indeed, if it weren’t for the BoJ’s ongoing Yield Curve Control (YCC), the 10-year JGB yield would arguably be quite a bit higher than 1%, let alone its latest level of ~0.67%, given where other yields are now. Nonetheless, our view is that yields in the rest of the world will fall back as the Fed leads the way in loosening policy. So, we continue to doubt the 10-year JGB yield will settle above 1%.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services